Melbourne IRS Lawyer

You do not want to have unresolved problems with the IRS. The IRS is allowed to levy (seize) funds from your paycheck of bank account(s).

There are a number of ways you can keep this from occurring. One way is referred to as making an Offer in Compromise. This is a Congress-mandated program that allows taxpayers to make an offer to settle their tax debts in full. The IRS can calculate an amount less than the full payment originally deemed due. Your property or wages will no longer be seizable once there is an offer in place. There are three different types of offers.

Doubt as to Liability is the first. The lawfulness of the debt is what is in question here.

The second offer type that comes under this category is Doubt as to Collectability. This is the most common type of offer and what people typically think of when they think of an Offer in Compromise.

The name of the third type of compromise is Effective Tax Administration. It is a rare event when the IRS accepts this type of offer. In this type of settlement, there is usually some difficulty in implementing payment.

The second basic way of resolving your IRS problems is a fairly well-kept secret. It is based on the time limit for the collection of income tax. Generally ten years fro the date of the assessment of the tax, there is a Collection Statute Expiration Date (CSED). It is possible to simply wait this out.

The third way to handle IRS difficulties applies if a taxpayer has no ability to pay (according to the IRS' analysis). The debt, in this case, is put into a status called Currently Not Collectible. There is another name for this, Status 53, and it refers to the screen number an IRS employee is looking at. When in Status 53, your debt is placed in 'hardship' category, and the collection statute continues to count down.

The fourth alternative to handling unresolved IRS issues is to set up an installment agreement (payment plan). This is fairly straightforward.

If you are in Chapter 13, a bankrupt status, you may also obtain tax debt relief. In this case, some of the taxes and penalties are dischargeable, and those that are not may be paid without interest.

Penalty abatement is the sixth of your options. This means you are requesting that penalties be cancelled. You still owe your original debt.

The last method is Innocent Spouse Relief. Here, taxes due by a former or current spouse may be forgiven under particular circumstances.

When you have had tax issues with the IRS, you are well advised to seek professional assistance for resolving the matter.

American Tax Lawyer, Darrin T. Mish represents taxpayers all over the United States and on every inhabited continent. His many years of experience in dealing with tax problems benefit clients tremendously. For more information, visit http//americantaxlawyer.com. Darrin may be reached by calling toll free (888) 438-6474.